Nintendo reports loss as Wii U sales languish

Oct 30, 2013 by Ken Moritsugu
In this Wednesday, July 31, 2013, file photo, a Super Mario figure greets visitors as children play at Nintendo showroom in Tokyo. Nintendo reports quarterly earnings on Wednesday, Oct. 30, 2013. (AP Photo/Shizuo Kambayashi, File)

Video game maker Nintendo sank to a loss in the latest quarter as sales of its Wii U game console continued to be eroded by a shift to gaming on smartphones and tablets.

The Kyoto-based maker of Pokemon and Super Mario reported an 8 billion yen ($81 million) loss Wednesday for the three months ended Sept. 30. That virtually wiped out an 8.6 billion yen profit the previous quarter. Sales totaled 115 billion yen, a slight drop from the same quarter last year.

Quarterly Wii U sales nearly doubled to 300,000 units from 160,000 in the previous three months, but the total remained far short of the company's goal of 9 million units for the fiscal year ending next March.

The company's business has been shaken in recent years as more people play games on their smartphone and tablets. So far Nintendo has resisted offering its games on those platforms, but analysts say continued poor performance could force a change in strategy.

The company cut the price of Wii U console last month.

"The Wii U hardware still has a negative impact on Nintendo's profits," the company said, "owing mainly to its markdown in the United States and Europe."

Nintendo Co. recorded an operating loss of 23.3 billion yen in the first half. Despite the weak performance, it didn't change its forecasts for Wii U sales and a 100 billion yen operating profit.

Sales are likely to pick up over the year-end holiday season, but the Wii U will face competition from Sony's new PlayStation 4, due out next month, and Microsoft's coming Xbox One.

Explore further: EU Parliament votes to break up Google

More information: Online: www.nintendo.co.jp/ir/pdf/2013/131030e.pdf

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Nintendo returns to profit on weak yen boost

Apr 24, 2013

Nintendo Co. returned to profit for the fiscal year ended March 31 as a lift from the weakening yen offset sales struggles caused by software delays for its latest home console Wii U.

Yen fall returns Nintendo to profit (Update)

Jul 31, 2013

Nintendo is making money again courtesy of a weaker yen but its business selling game machines is ailing, with sales of its flagship Wii U console still lackluster.

Nintendo returns to profit, lowers sales forecasts

Jan 30, 2013

Japanese video game maker Nintendo Co. returned to the black for the first nine months of its business year and more than doubled its profit forecast for the full year, getting a perk from a weaker yen, despite ...

Nintendo trims red ink, lowers forecast for year

Oct 24, 2012

(AP)—Nintendo Co. narrowed its losses in the fiscal first half, but the Japanese game maker lowered its sales and profit forecasts for the full year ahead of the launch of its new Wii U home console.

Nintendo posts loss on strong yen, weak sales

Jan 26, 2012

(AP) -- Nintendo Co. sank to losses for the April-December period, battered by a price cut for its 3DS handheld, a strong yen that erodes overseas earnings and competition from mobile devices such as the ...

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.